The Relationship between Governance and Sustainable Development

Abstract

This paper presents a methodological approach to evaluating the relationship between governance and several variables commonly related to the concept of sustainable development and, also, related to financial indicators from various countries. We explore the theoretical framework linking the level of governance of the countries with their economic performance. Our sample incorporates data from developed and emergent countries, collected by the World Bank and Transparency International, in order to assess the significance of governance impact among countries with distinct degrees of development. Multiple regression analysis and panel data modeling were used to explore statistical relations amongst variables. Results show a positive relation between levels of governance and economic development, besides illustrating other significant issues.

Keywords: Governance, sustainable development, emergent countries, multiple regressions, panel data models

JEL Classification: H00, H10, C30, C33